Bharat Forge Q2FY26 Concall Decoded: “Forging Ahead, Even When the Tariffs Hit Hard”
1. Opening Hook
Just when everyone thought the “Make in India” dream was all defense contracts and electric axles, Bharat Forge decided to forge its own twist — a cocktail of tariff tantrums, export slowdowns, and defense orders big enough to arm a small country. North America sneezed, and Pune caught a cold — CV exports fell off a cliff. Yet, the company calmly mentioned a ₹1,400 crore carbine order like it’s just another Tuesday.
And if that wasn’t enough, they’re eyeing Indian growth like a hungry blacksmith spotting molten steel. Read on — because between tariffs, titanium, and tanks, the plot thickens (and margins melt).
2. At a Glance
Revenue ₹4,032 Cr (Consol) – Down 7.5% QoQ; apparently, North America took an early Diwali break.
Standalone EBITDA ₹545 Cr (28%) – Margins held up, but tariffs worth ₹24 Cr gatecrashed.
Net Profit – Not flaunted, so assume it wasn’t party-worthy.
Defense Order Wins ₹1,582 Cr (H1) – CFO flexed order book like a collector showing off limited-edition tanks.
Cash ₹2,300 Cr – Enough ammo to go shopping for acquisitions.
CV Exports ↓67% YoY – Trucks stayed home sulking over US tariffs.
3. Management’s Key Commentary
“CV exports to North America are down 48% sequentially.” (Translation: Uncle Sam’s tariff tantrums hit us like a bad hangover.) 😏
“Aerospace now accounts for 13% of our industrial exports.” (Translation: When trucks stopped moving, jets started flying.)
“We secured new business worth ₹1,582 Cr across key verticals.” (Translation: The defense guys are keeping the lights on.)
“We’re raising ₹2,000 Cr via debt/NCD for organic and inorganic growth.” (Translation: Time to go shopping—because nothing screams optimism like more leverage.)
“Our overseas steel business is the problem child; restructuring by fiscal-end.” (Translation: Send it to boarding school in Europe.)
“India manufacturing is two-thirds of our revenue now.” (Translation: Finally, desi forging beats foreign whining.)
“We will double down on India—it’s where the growth is.” (Translation: Who needs America when Modi and Make-in-India are around?)
